Question

For how much **, interest on drawings will be calculated if the equal amounts are drawn for 6 months ending on

1. 1st date of every month,

2. End of every month,

3. Middle of every month?

Answer 1

Interest will calculate as follows:

1. 1st day of every month: ( \frac { N+1 }{ 2 } = \frac { 6+1 }{ 2 } ) = 3.5 month

2. Last day of every month: ( \frac { N-1 }{ 2 } = \frac { 6-1 }{ 2 } )= 2.5 month

3. Middle day of every month: ( \frac { N }{ 2 } = \frac { 6 }{ 2 } =) 3 month